Magna International Inc. (TSX:MG) reported third-quarter adjusted earnings of US$1.83 per share on Friday, up 38 per cent from US$1.33 a year earlier, as sales fell four per cent to US$10.1 billion. The Aurora, Ont.-based auto parts maker also raised its free cash flow outlook and said its board approved a new share buyback.
Magna said net income attributable to the company was US$383 million, compared with US$305 million in the third quarter of 2025, and diluted earnings per share were US$1.44, up 33 per cent from US$1.08. Adjusted EBIT rose 11 per cent to US$683 million, with the margin widening 90 basis points to 6.8 per cent, according to the company’s news release. Adjusted EPS, adjusted EBIT and free cash flow are non-GAAP measures. All figures are in U.S. dollars.
The company said lower sales reflected a five per cent decline in North American light vehicle production, a seven per cent drop in China, the end of some programs, and the 2026 divestitures of its Lighting and Rooftop Systems businesses. Production in Europe rose three per cent. Magna said higher earnings came from favourable commercial items, productivity gains and recoveries for tariffs and lower tariff costs, partly offset by higher commodity costs and foreign exchange losses.
Free cash flow was US$584 million in the quarter, compared with US$572 million a year earlier, and Magna said it returned US$658 million to shareholders through dividends and share repurchases. For the first nine months of the year, sales were US$31.4 billion, adjusted EPS was US$5.06 and free cash flow was US$1.57 billion.
Magna reaffirmed the midpoint of its full-year adjusted EPS outlook and raised its free cash flow outlook. Its board approved a new normal course issuer bid to repurchase up to 10 per cent of the public float over the next 12 months. Chief executive Swamy Kotagiri said the results show disciplined execution is driving higher earnings, margins and cash generation, and the company is to hold an investor day on Nov. 11.
The results were released before the TSX open on Friday. Our TSX preview for Friday has the wider market picture, and our Air Canada earnings report covers the other major results this week.
| Magna Q3 2026 (US$) | Q3 2026 | Q3 2025 |
|---|---|---|
| Sales | $10.059 billion | $10.462 billion |
| Net income attributable to Magna | $383 million | $305 million |
| Diluted earnings per share | $1.44 | $1.08 |
| Adjusted EPS | $1.83 | $1.33 |
| Adjusted EBIT | $683 million | $613 million |
| Free cash flow | $584 million | $572 million |
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